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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-8B-2
REGISTRATION STATEMENT OF UNIT INVESTMENT
TRUSTS WHICH ARE CURRENTLY
ISSUING SECURITIES
Dated February 28, 2000
Pursuant to Section 8(b) of the
Investment Company Act of 1940
FARM BUREAU LIFE VARIABLE ACCOUNT
(Name of Unit Investment Trust)
5400 University Avenue
WEST DES MOINES, IOWA 50266
(Address of Principal Office of Registrant)
Issuer of periodic payment plan certificates
only for purposes of information provided herein
Page 1 of 55 Pages
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I.
ORGANIZATION AND GENERAL INFORMATION
1. (a) Furnish name of the trust and the Internal Revenue Service
Employer Identification Number.
Farm Bureau Life Variable Account (the "Variable Account").
The Variable Account has no Internal Revenue Service Employer
Identification Number.
(b) Furnish title of each class or series of securities issued by
the trust.
Flexible Premium Variable Life Insurance Policy ("VUL") and
Flexible Premium Last Survivor Variable Life Insurance Policy
("LSVUL") (together "the Policies")
2. Furnish name and principal business address and ZIP code and the
Internal Revenue Service Employer Identification Number of each
depositor of the trust.
Farm Bureau Life Insurance Company (the "Company")
5400 University Avenue
West Des Moines, Iowa 50266
Internal Revenue Service Employer
Identification Number: 42-0623913
3. Furnish name and principal business address and ZIP code and the
Internal Revenue Service Employer Identification Number of each
custodian or trustee of the trust indicating for which class or series
of securities each custodian or trustee is acting.
The Company will hold in its own custody all of the securities.
4. Furnish name and principal business address and ZIP code and the
Internal Revenue Service Employer Identification Number of each
principal underwriter currently distributing securities of the trust.
The principal underwriter for distribution of the VUL and LSVUL
policies is:
EquiTrust Marketing Services, LLC ("ET Marketing")
5400 University Avenue
West Des Moines, Iowa 50266
Internal Revenue Service Employer
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Identification Number: 42-0954364
5. Furnish name of state or other sovereign power, the laws of which
govern with respect to the organization of the trust.
Iowa
6. (a) Furnish the dates of execution and termination of any
indenture or agreement currently in effect under the terms of
which the trust was organized and issued or proposes to issue
securities.
The Variable Account was established under the laws of the
State of Iowa pursuant to resolutions adopted by the Board of
Directors of the Company on March 3, 1987. The Variable
Account will continue in existence until the Board of
Directors of the Company directs that it be terminated. The
Policy will be issued pursuant to the resolution.
(b) Furnish the dates of execution and termination of any
indenture or agreement currently in effect pursuant to which
the proceeds of payments on securities issued or to be issued
by the trust are held by the custodian or trustee.
Not applicable.
7. Furnish in chronological order the following information with respect
to each change of name of the trust since January 1, 1930.
The Variable Account has never been known by any other name.
8. State the date on which the fiscal year of the trust ends.
December 31.
MATERIAL LITIGATION
9. Furnish a description of any pending legal proceedings, material with
respect to the security holders of the trust by reason of the nature of
the claim or the amount thereof, to which the trust, the depositor, or
the principal underwriter is a party or of which the assets of the
trust are the subject, including the substance of the claims involved
in such proceeding and the title of the proceeding. Furnish a similar
statement with respect to any pending administrative proceeding
commenced by a governmental authority or any such proceeding or legal
proceeding known to be contemplated by a governmental authority.
Include any proceeding which, although immaterial itself, is
representative of, or one of, a group which in the aggregate is
material.
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There are no pending administrative proceedings commenced by, or known
to be contemplated by, a governmental authority and no pending legal
proceedings, material with respect to prospective purchasers of the
Policies, to which the Variable Account, the Company or ET Marketing is
a party or to which the assets of the Variable Account are subject.
II.
GENERAL DESCRIPTION OF THE TRUST
AND SECURITIES OF THE TRUST
GENERAL INFORMATION CONCERNING THE SECURITIES OF THE TRUST AND THE RIGHTS OF
HOLDERS
10. Furnish a brief statement with respect to the following matters for
each class or series of securities issued by the trust:
(a) Whether the securities are of the registered or bearer type.
The Policies are of the registered type insofar as each Policy
is personal to the owner of a Policy ("Policyowner") and the
records concerning the Policyowner are maintained by or on
behalf of the Company. The Variable Account concurrently has
filed separate registration statements on Form S-6 registering
the Policies with the Securities and Exchange Commission.
Capitalized terms used in this Form N-8B-2 have the same
meaning as in both Form S-6 registration statements.
(b) Whether the securities are of the cumulative or distributive
type.
Each Policy is of the cumulative type, providing for no direct
distribution of income, dividends or capital gains. Such
amounts are not separately identifiable but are reflected in
the Net Cash Value or Net Surrender Value upon surrender and
in the payment of the death benefit upon the death of the
Insured (or last Joint Insured, in an LSVUL, as applicable).
(c) The rights of security holders with respect to withdrawal or
redemption.
The Policyowner may cancel the Policy by delivering or mailing
written notice to the Company at its Home Office, and
returning the Policy to the Company at its Home Office before
midnight of the twentieth day after receipt of the Policy.
Notice given by mail and return of the Policy by mail are
effective on being postmarked, properly addressed and postage
prepaid.
The Company will refund, within seven days after receipt of
the returned Policy at its Home Office, the greater of
premiums paid or the Policy's Cash Value plus an
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amount approximately equal to any charges that have been
deducted from premiums, Cash Value and the Variable Account.
At any time prior to the Maturity Date while the Policy is in
force, a Policyowner may surrender the Policy in whole or in
part by sending a written request to the Company at its Home
Office. A surrender charge equal to the lesser of $25 or 2% of
the amount partially or fully surrender will apply under a
VUL. (This same calculation will be considered for the partial
withdrawal fee in an LSVUL.) In an LSVUL, a surrender charge
will apply to any surrender during the first ten Policy Years,
as well as during the first ten years following an increase in
Specified Amount.
The amount payable upon surrender of the Policy is the Net
Cash Value, minus the surrender charge, at the end of the
Valuation Period during which the request is received. This
amount may be paid in a lump sum or under one of the payment
options specified in the Policy as requested by the
Policyowner. Upon surrender, all insurance in force will
terminate.
A Policyowner may obtain a portion of the Policy's Net Cash
Value. A partial surrender must be at least $500 and cannot
exceed the lesser of (i) the Net Cash Value less $500 or (2)
90% of the Net Cash Value. If not paid in cash, the surrender
charge will be deducted from the Cash Value upon each partial
surrender. The Policyowner may request that the proceeds of a
partial surrender be paid in a lump sum or under one of the
payment options specified in the Policy.
A partial surrender will be allocated among the Subaccounts
and the Declared Interest Option in accordance with the
written instructions of the Policyowner. If no such
instructions are received with the request for partial
surrender, the partial surrender will be allocated among the
Subaccounts and the Declared Interest Option in the same
proportion that the Cash Value in each of the Subaccounts and
the Cash Value in the Declared Interest Option reduced by any
outstanding Policy Debt bears to the total Cash Value reduced
by any outstanding Policy Debt on the date the request is
received at the Home Office.
Partial surrenders will affect both the Policy's Cash Value
and the death proceeds payable under the Policy. The Policy's
Cash Value will be reduced by the amount of the partial
surrender. If the death benefit payable under either death
benefit option both before and after the partial surrender are
equal to the Cash Value multiplied by the specified amount
factor set forth in the Policy, a partial surrender will
result in a reduction in death proceeds equal to the amount of
the partial surrender, multiplied by the specified amount
factor then in effect. If the death benefit is not so affected
by the specified amount factor, the reduction in death
proceeds will be equal to the partial surrender.
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Partial surrenders will reduce the Policy's Specified Amount
by the amount of Cash Value surrendered if Option B is in
effect at the time of the surrender. If Option A is in effect
at the time of the surrender, there will be no effect on
Specified Amount. The Specified Amount remaining in force
after a partial surrender may not be less than the minimum
Specified Amount for the Policy in effect on the date of the
partial surrender, as published by the Company. As a result,
the Company will not process any partial surrender that would
reduce the Specified Amount below this minimum. If increases
in the Specified Amount previously have occurred, a partial
surrender will first reduce the Specified Amount of the most
recent increase, then the next most recent increases
successively, then the coverage under the original
application. Thus, a partial surrender may affect the amount
of the cost of insurance charge.
Payment of amounts in connection with a surrender or partial
surrender ordinarily will be mailed to the Policyowner within
seven (7) days after the Company receives a signed request for
withdrawal at its Home Office. Payment may be postponed
whenever: (i) the New York Stock Exchange is closed other than
customary weekend and holiday closings, or trading on the New
York Stock Exchange is restricted as determined by the
Securities and Exchange Commission ("Commission"); (ii) the
Commission by order permits postponement for the protection of
Policyowners; or (iii) an emergency exists, as determined by
the Commission, as a result of which disposal of securities is
not reasonably practicable or it is not reasonably practicable
to determine the value of the net assets of the Variable
Account. In addition, requests for surrenders of Cash Value
derived from any amount paid by check or draft may be
postponed until such time as the Company is satisfied that the
check or draft has cleared the bank upon which it was drawn.
(d) The rights of security holders with respect to conversion,
transfer, partial redemption, and similar matters.
A Policyowner may, at any time prior to the Maturity Date
while the Policy is in force, convert the Policy to a flexible
premium fixed-benefit life insurance policy in a VUL (or
flexible premium fixed-benefit last survivor life insurance
policy in an LSVUL) by requesting that all of the Cash Value
in the Variable Account be transferred to the Declared
Interest Option. The Policyowner may exercise this special
transfer privilege once each Policy Year. Once a Policyowner
exercises the special transfer privilege, all future premium
payments will automatically be credited to the Declared
Interest Option, until such time as the Policyowner requests a
change in allocation. No charge will be imposed for any
transfers resulting from the exercise of the special transfer
privilege.
Policyowners may transfer amounts among the Subaccounts of the
Variable Account an unlimited number of times in a Policy
Year. Amounts may be
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transferred between the Variable Account and the Declared
Interest Option only once in a Policy Year. Transfers are made
by written request to the Home Office or, if the Policyowner
has elected the "Telephone Transfer Authorization" on the
supplemental application by calling the Home Office toll-free
at (800) 247-4170. The amount of the transfer must be at least
$100 or the total Cash Value in the Subaccount or in the
Declared Interest Option (reduced, in the case of the Declared
Interest Option, by any outstanding Policy Debt), if less than
$100. The Company may, at its discretion, waive the $100
minimum requirement. The transfer will be effective as of the
end of the Valuation Period during which the request is
received at the Home Office.
The first transfer in each Policy Year will be made without
charge; each time amounts are subsequently transferred in that
Policy Year, a transfer charge of $25 may be assessed. The
transfer charge, unless paid in cash, will be deducted from
the amount transferred. Once a Policy is issued, the amount of
the transfer charge is guaranteed for the life of the Policy.
For purposes of these limitations and charges, all transfers
effected on the same day will be considered a single transfer.
The Policyowner may obtain Policy Loans, as described in Item
21.
The Policyowner may make surrenders and partial surrenders, as
described in Item 10(c).
(e) If the trust is the issuer of periodic payment plan
certificates, the substance of the provisions of any indenture
or agreement with respect to lapses or defaults by security
holders in making principal payments, and with respect to
reinstatement.
The Policy will lapse if, on a Monthly Deduction Day, the Net
Cash Value (or Net Surrender Value after three years in an
LSVUL) is insufficient to cover the monthly deduction due and
a Grace Period expires without a sufficient payment. The
Company allows a 61-day Grace Period for payment of a premium
that, when reduced by the premium expense charge, will be at
least equal to three times the monthly deduction due on such
Monthly Deduction Day. The Grace Period will begin on the date
the Company mails notice of the insufficiency to the
Policyowner. Failure to make a sufficient payment by the end
of the Grace Period will cause the Policy to lapse and
terminate without value.
Insurance coverage continues during the Grace Period, but the
Policy will be deemed to have no Cash Value for purposes of
Policy Loans and surrenders during such Grace Period.
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If the Insured (or Joint Insureds in an LSVUL, as applicable)
dies during the Grace Period, the death proceeds payable
during the Grace Period will equal the amount of the death
proceeds payable immediately prior to the commencement of the
Grace Period, reduced by any due and unpaid monthly
deductions.
Prior to the Maturity Date, a lapsed Policy may be reinstated
at any time within five years of the Monthly Deduction Day
immediately preceding the Grace Period which expired without
payment of the required premium. Reinstatement is effected by
submitting the following items to the Company: (i) a written
application for reinstatement signed by the Policyowner and
the Insured (or Joint Insureds in an LSVUL, as applicable);
(ii) evidence of insurability satisfactory to the Company;
(iii) a premium that, after the deduction of the premium
expense charge, is at least sufficient to keep the Policy in
force for three months; and (iv) an amount equal to the
monthly cost of insurance for the two Policy Months prior to
lapse.
(State law may limit the premium to be paid on reinstatement
to an amount less than that described.) To the extent that the
first year monthly administrative charge was not deducted for
a total of twelve Policy Months prior to lapse, such charge
will continue to be deducted following reinstatement of the
Policy until such charge has been assessed, both before and
after the lapse, for a total of 12 Policy Months. The Company
will not reinstate a Policy surrendered for its Cash Value (or
Net Surrender Value in an LSVUL).
The effective date of the reinstated Policy will be the
Monthly Deduction Day coinciding with or next following the
date the Company approves the application for reinstatement.
(f) The substance of the provisions of any indenture or agreement
with respect to voting rights, together with the names of any
persons other than security holders given the right to
exercise voting rights pertaining to the trust's securities or
the underlying securities and the relationship of such persons
to the trust.
To the extent required by law, the Company will vote the Fund
shares held in the Variable Account at regular and special
shareholder meetings of the Funds in accordance with
instructions received from persons having voting interests in
the corresponding Subaccounts. If, however, the Investment
Company Act of 1940 or any regulation thereunder should be
amended or if the present interpretation thereof should
change, and, as a result, the Company determines that it is
permitted to vote the Fund shares in its own right, it may
elect to do so.
The number of votes which a Policyowner has the right to
instruct will be calculated separately for each Subaccount.
The number of votes which each Policyowner has the right to
instruct will be determined by dividing a Policy's
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Cash Value in a Subaccount by the net asset value per share of
the corresponding Investment Option in which the Subaccount
invests. Fractional shares will be counted. The number of
votes of the Investment Option which the Policyowner has the
right to instruct will be determined as of the date coincident
with the date established by that Investment Option for
determining shareholders eligible to vote at such meeting of
the Fund. Voting instructions will be solicited by written
communications prior to such meeting in accordance with
procedures established by each Fund. Each person having a
voting interest in a Subaccount will receive proxy material,
reports and other materials relating to the appropriate
Investment Option.
The Company will vote Fund shares attributable to the Policies
as to which no timely instructions are received (as well as
any Fund shares held in the Variable Account which are not
attributable to the Policies) in proportion to the voting
instructions which are received with respect to all Policies
participating in each Investment Option. Voting instructions
to abstain on any item to be voted upon will be applied on a
PRO RATA basis to reduce the votes eligible to be cast on a
matter.
Fund shares may also be held by separate accounts of other
affiliated and unaffiliated insurance companies. The Company
expects that those shares will be voted in accordance with
instructions of the owners of insurance policies and contracts
issued by those other insurance companies. Voting instructions
given by owners of other insurance policies will dilute the
effect of voting instructions of Policyowners.
The Company provided the start-up capital for the Fund by
purchasing $100,000,000 worth of shares. The Company intends
to vote these shares in proportion to the voting instructions
received from Policyowners.
The Company may, when required by state insurance regulatory
authorities, disregard voting instructions if the instructions
require that the shares be voted so as to cause a change in
the sub-classification or investment objective of an
Investment Option or to approve or disapprove an investment
advisory contract for an Investment Option. In addition, the
Company itself may disregard voting instructions in favor of
changes initiated by a Policyowner in the investment policy or
the investment adviser of an Investment Option if the Company
reasonably disapproves of such changes. A change would be
disapproved only if the proposed change is contrary to state
law or prohibited by state regulatory authorities or the
Company determined that the change would have an adverse
effect on the General Account in that the proposed investment
policy for an Investment Option may result in overly
speculative or unsound investments. In the event the Company
does disregard voting instructions, a summary of that
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action and the reasons for such action will be included in the
next annual report to Policyowners.
(g) Whether security holders must be given notice of any change in:
(1) the composition of the assets of the trust.
The Company reserves the right, subject to compliance with
applicable law, to make additions to, deletions from, or
substitutions for the shares of the Investment Options that
are held by the Variable Account or that the Variable Account
may purchase. If the shares of an Investment Option are no
longer available for investment or if, in its judgement,
further investment in any Investment Option should become
inappropriate in view of the purposes of the Variable Account,
the Company reserves the right to dispose of the shares of any
Investment Option of the Fund and to substitute shares of
another Investment Option. The Company will not substitute any
shares attributable to a Policyowner's Cash Value in the
Variable Account without notice to and prior approval of the
Securities and Exchange Commission, to the extent required by
the Investment Company Act of 1940 or other applicable law.
The Company also reserves the right to establish additional
subaccounts of the Variable Account, each of which would
invest in shares of a new Investment Option with a specified
investment objective. New subaccounts may be established when,
in the sole discretion of the Company, marketing, tax or
investment conditions warrant, and any new subaccounts may be
made available to existing Policyowners on a basis to be
determined by the Company. Subject to obtaining any approvals
or consents required by applicable law, the assets of one or
more Subaccounts may be transferred to any other
Subaccount(s), or one or more Subaccounts may be eliminated or
combined with any other Subaccounts if, in the sole discretion
of the Company, marketing, tax, or investment conditions
warrant.
In the event of any such substitution or change, the Company
may, by appropriate endorsement, make such changes in these
and other policies as may be necessary or appropriate to
reflect such substitution or change. If deemed by the Company
to be in the best interests of persons having voting rights
under the Policies, the Variable Account may be operated as a
management company under the Investment Company Act of 1940,
may be deregistered under that Act in the event such
registration is no longer required, or, subject to obtaining
any approvals or consents required by applicable law, may be
combined with other Company separate accounts. To the extent
permitted by applicable law, the Company may also transfer the
assets of the Variable Account associated with the Policies to
another separate account. In addition, the Company may, when
permitted by law,
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restrict or eliminate any voting rights of Policyowners or
other persons who have voting rights as to the Variable
Account.
(2) the terms and conditions of the securities issued by the
trust.
No changes in the terms and conditions of a Policy that affect
the Policyowner's rights will be made without notice to the
Policyowner to the extent required by law.
(3) the provisions of any indenture or agreement of the trust.
No notice to or consent from Policyowners is required for any
change in the Company's resolution establishing the Variable
Account.
(4) the identity of the depositor, trustee or custodian.
No notice to or consent from Policyowners is required.
(h) Whether the consent of security holders is required in order
for action to be taken concerning any change in:
(1) the composition of the assets of the trust.
Consent of Policyowners is not required when changing the
underlying securities of the Variable Account. However, to
change such securities, approval of the Commission may be
required by Section 26(b) of the 1940 Act.
(2) the terms and conditions of the securities issued by the
trust.
Except as appropriate to comply with federal or state law or
regulation, no change in the terms and conditions of a Policy
can be made without consent of the Policyowner.
(3) the provisions of any indenture or agreement of the trust.
No consent is required.
(4) the identity of the depositor, trustee or custodian
No consent is required.
(i) Any other principal feature of the securities issued by the
trust or any other principal right, privilege or obligation
not covered by subdivisions (a) to (g) or by any other item in
this form.
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(1) PREMIUM PAYMENTS. Before it will issue a Policy, the
Company may require the Policyowner to pay an initial
premium that, when reduced by the premium expense
charge, will be sufficient to pay the monthly
deduction for the first Policy Month.
Each Policyowner will determine a planned periodic
premium schedule that provides for the payment of a
level premium over a specified period of time on a
quarterly, semi-annual or annual basis. The Company
may, at its discretion, permit planned periodic
premium payments to be made on a monthly basis.
Periodic reminder notices ordinarily will be sent to
the Policyowner for each planned periodic premium.
Depending on the duration of the planned periodic
premium schedule, the timing of planned payments
could affect the tax status of the Policy.
The Policyowner is not required to pay premiums in
accordance with the planned periodic premium
schedule. Furthermore, the Policyowner has
considerable flexibility to alter the amount,
frequency, and the time period over which planned
periodic premiums are paid; however, no planned
periodic payment may be less than $100 without the
Company's consent.
A Policyowner may make unscheduled premium payments
at any time prior to the Maturity Date, subject to
the minimum and maximum premium limitations described
below. Each unscheduled premium payment must be at
least $100; however, the Company may, in its
discretion, waive this minimum requirement. The
Company reserves the right to limit the number and
amount of unscheduled premium payments.
In no event may the total of all premiums paid, both
planned periodic and unscheduled, exceed the
applicable maximum premium limitation imposed by
federal tax laws. Because the maximum premium
limitation is in part dependent upon the Specified
Amount for each Policy, changes in the Specified
Amount may affect this limitation. If at any time a
premium is paid which would result in total premiums
exceeding the applicable maximum premium limitation,
the Company will only accept that portion of the
premium which will make total premiums equal the
maximum. Any part of the premium in excess of that
amount will be returned and no further premiums will
be accepted until allowed by the applicable maximum
premium limitation.
Payments made by the Policyowner will be treated
first as payment of any outstanding Policy Debt
unless the Policyowner indicates that the payment
should be treated otherwise. Where no indication is
made, any portion of
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a payment that exceeds the amount of any outstanding
Policy Debt will be treated as a premium payment.
The Net Premium is the amount available for
investment. The Net Premium equals the premium paid
less the premium expense charge.
In the application for a Policy, the Policyowner can
allocate Net Premiums or portions thereof to the
Subaccounts of the Variable Account, to the Declared
Interest Option, or both. Notwithstanding the
allocation in the application, the Net Premiums will
first be allocated to the Declared Interest Option if
we receive them either 1) before the date we obtain a
signed notice of receipt from the Policyowner, or 2)
before the end of 25 days after the Delivery Date
(the date the Company issues and mails the Policy).
Upon the earlier of 1) or 2) above, the Company will
automatically allocate the Cash Value in the Declared
Interest Option, without charge, among the
Subaccounts and the Declared Interest Option. We
allocate Net Premiums received on or after 1) or 2)
above in accordance with the Policyowner's
instructions, to the Variable Account, the Declared
Interest Option, or both. The Policyowner does not
waive his cancellation privilege by sending the
signed notice of receipt and acceptance of the Policy
to the Company.
The minimum percentage of each premium that may be
allocated to any Subaccount or to the Declared
Interest Option is 10%; no fractional percentages
will be permitted. The allocation for future Net
Premiums may be changed without charge at any time
while the Policy is in force by providing the Company
with written notice on a form acceptable to the
Company signed by the Policyowner. The change will
take effect on the date the written notice is
received at the Home Office and will have no effect
on prior Cash Values.
(2) DEATH PROCEEDS. So long as the Policy remains in
force, the Policy provides for the payment of death
proceeds upon the death of the Insured in a VUL (and
upon the last death of the Joint Insureds in an
LSVUL, as applicable). Proceeds will be paid to the
primary Beneficiary or a contingent Beneficiary. One
or more primary Beneficiaries or contingent
Beneficiaries may be named. If no Beneficiary
survives the Insured, the death proceeds will be paid
to the Policyowner or his estate. Death proceeds may
be paid in a lump sum or under a payment option. (If
the Joint Insureds die simultaneously in an LSVUL,
the Company will pay one-half of the death proceeds
to each Joint Insured's beneficiary.) To determine
the death proceeds, the death benefit will be reduced
by any outstanding Policy Debt and increased by any
unearned loan interest and any premiums paid after
the date of death. Proceeds will ordinarily be
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mailed to the Policyowner within seven days after
receipt by the Company of Due Proof of Death. Payment
may, however, be postponed under certain
circumstances. The Company pays interest on those
proceeds, at an annual rate no less than 3%, or any
rate required by law, from the date of death to the
date payment is made.
Policyowners designate in the initial application one
of two death benefit options offered under the
Policy. The amount of the death benefit payable under
a Policy will depend upon the option in effect at the
time of the Insured's death. Under Option A, the
death benefit will be equal to the greater of (i) the
sum of the current Specified Amount and the Cash
Value, or (ii) the Cash Value multiplied by the
specified amount factor. Cash Value will be
determined as of the end of the Business Day
coinciding with or immediately following the date of
death. In a VUL, the specified amount factor is 2.50
for an Insured Attained Age 40 or below on the date
of death. For Insureds with an Attained Age over 40
on the date of death, the factor declines with age as
shown in the Specified Amount Factor Table in the
Policy. In an LSVUL, the specified amount factor is
2.50 for a Joint Insureds' Joint Equal Attained Age
40 or below on the date of death. For Joint Insureds
with a Joint Equal Attained Age over 40 on the date
of death, the factor declines with age as shown in
the Specified Amount Factor Table in the Policy.
Under Option B, the death benefit will be equal to
the greater of (i) the current Specified Amount, or
(ii) the Cash Value (determined as of the end of the
Business Day coinciding with or immediately following
the date of death) multiplied by the specific amount
factor. The specified amount factor is the same as
under Option A.
The death benefit option in effect may be changed at
any time by sending the Company a written request for
the change. The effective date of such a change will
be the Monthly Deduction Day coinciding with or
immediately following the date the change is approved
by the Company.
If the death benefit option is changed from Option A
to Option B, the death benefit will not change and
the current Specified Amount will be increased by the
Cash Value on the effective date of the change. If
the benefit option is changed from Option B to Option
A, the current Specified Amount will be reduced by an
amount equal to the Cash Value on the effective date
of the change. A change in the death benefit option
may not be made if it would result in a Specified
Amount which is less than the minimum Specified
Amount in effect on the effective date of the change
or if after the change the Policy would no longer
qualify as life insurance under federal tax law.
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No charges will be imposed upon a change in death
benefit option; however, a change in death benefit
option will affect the cost of insurance charges.
After a Policy has been in force for one Policy Year,
a Policyowner may adjust the existing insurance
coverage by increasing or decreasing the Specified
Amount. To make a change, the Policyowner must send a
written request to the Company at its Home Office.
Any change in the Specified Amount may affect the
cost of insurance rate and the net amount at risk,
both of which will affect a Policyowner's cost of
insurance charge. If decreases in the Specified
Amount cause the premiums paid to exceed the maximum
premium limitations required by federal tax law, the
decrease will be limited to the extent necessary to
meet these requirements.
Any decrease in the Specified Amount will become
effective on the Monthly Deduction Day coinciding
with or immediately following the date the request is
approved by the Company. The decrease will first
reduce the Specified Amount provided by the most
recent increase, then the next most recent increases
successively, then the Specified Amount under the
original application. The Specified Amount following
a decrease can never be less than the minimum
Specified Amount for the Policy in effect on the date
of the decrease. A Specified Amount decrease will not
reduce the Surrender Charge.
To apply for an increase, evidence of insurability
satisfactory to the Company must be provided. Any
approved increase will become effective on the
Monthly Deduction Day coinciding with or immediately
following the date the request is approved by the
Company. An increase will not become effective,
however, if the Policy's Cash Value on the effective
date would not be sufficient to cover the deduction
for the increased cost of the insurance for the next
Policy Month. A Specified Amount increase is subject
to its own Surrender Charge.
(3) BENEFITS AT MATURITY. If the Insured is alive and the
Policy is in force on the Maturity Date, the Company
will pay to the Policyowner the Policy's Cash Value
as of the end of the Business Day coinciding with or
immediately following the Maturity Date, reduced by
any outstanding Policy Debt. Benefits at maturity may
be paid in a lump sum or under a payment option. The
Maturity Date is Attained Age 95 in a VUL and Joint
Equal Attained Age 115 in an LSVUL.
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(4) CALCULATION OF CASH VALUE. The Policy provides for
the accumulation of Cash Value. Cash Value will be
determined on each Business Day. A Policy's Cash
Value will reflect a number of factors including Net
Premiums paid, partial surrenders, Policy Loans,
charges assessed in connection with the Policy, the
interest earned on the Cash Value in the Declared
Interest Option, and the investment performance of
the Subaccounts to which the Cash Value is allocated.
There is no guaranteed minimum Cash Value. The Cash
Value of the Policy is equal to (1) the sum of the
Cash Values in each Subaccount, plus (2) the Cash
Value in the Declared Interest Option, including
amounts transferred to the Declared Interest Option
to secure outstanding Policy Debt.
As of the Issue Date, the Policy's Cash Value will
equal the Cash Value in the Declared Interest Option,
which will equal the initial Net Premium less the
monthly deduction made on the Policy Date.
Thereafter, the Cash Value in the Declared Interest
Option will reflect any interest credited, and any
subsequent monthly deductions made on Monthly
Deduction Days.
On the Business Day coinciding with or immediately
following the date the Company receives notice that
the Policy has been received, but no later than 25
days after the Delivery Date, the Cash Value, all of
which is in the Declared Interest Option will be
transferred automatically to the Subaccounts and the
Declared Interest Option in accordance with the
percentage allocation instructions. At the end of
each Valuation Period thereafter, the Cash Value in a
Subaccount is (i) plus (ii) plus (iii) minus (iv)
minus (v) minus (vi) where: (i) is the total
Subaccount units represented by the Cash Value at the
end of the preceding Valuation Period, multiplied by
the Subaccount's Unit Value for the current Valuation
Period; (ii) is any Net Premiums received during the
current Valuation Period which are allocated to the
Subaccount; (iii) is all Cash Values transferred to
the Subaccount from the Declared Interest Option or
from another Subaccount during the current Valuation
Period; (iv) is all Cash Values transferred from the
Subaccount to another Subaccount or to the Declared
Interest Option during the current Valuation Period,
including amounts transferred to the Declared
Interest Option to secure Policy Debt; (v) is all
partial surrenders from the Subaccount during the
current Valuation Period; and (vi) is the portion of
any monthly deduction charged to the Subaccount
during the current Valuation Period to cover the
Policy Month following the Monthly Deduction Day.
The Policy's total Cash Value in the Variable Account
equals the sum of the Policy's Cash Value in each
Subaccount.
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Each Subaccount has a Unit Value. When Net Premiums
are allocated to, or other amounts are transferred
into, a Subaccount, a number of Units are purchased
based on the Unit Value of the Subaccount as of the
end of the Valuation Period during which the transfer
is made. Likewise, when amounts are transferred out
of a Subaccount, Units are redeemed in a similar
manner. On any day, a Policy's Cash Value in a
Subaccount is equal to the number of Units held in
such Subaccount, multiplied by the Unit Value of such
Subaccount on that date.
For each Subaccount, the Unit Value was initially set
at $10 when the Subaccount first purchased shares of
the designated Investment Option. The Unit Value for
each subsequent Valuation Period is calculated by
dividing (a) by (b) where (a) is:
(1) the value of the net assets of the Subaccount at
the end of the preceding Valuation Period, plus (2)
the investment income and capital gains, realized or
unrealized, credited to the net assets of that
Subaccount during the Valuation Period for which the
Unit Value is being determined, minus (3) the capital
losses, realized or unrealized, charged against those
assets during the Valuation Period, minus (4) any
amount charged against the Subaccount for taxes, or
any amount set aside during the Valuation Period by
the Company as a provision for taxes attributable to
the operation or maintenance of that Subaccount; and
minus (5) a charge no greater than .0024548% of the
average daily net assets of the Subaccount for each
day in the Valuation Period. This corresponds to an
annual rate of .90% of the average daily net assets
of the Subaccount for mortality and expense risks
incurred in connection with the Policies; and
(b) is the number of units outstanding at the end of
the preceding Valuation Period.
The Unit Value for a Valuation Period applies for
each day in the period. The assets in the Variable
Account will be valued at their fair market value in
accordance with accepted accounting practices and
applicable laws and regulations.
(5) BUSINESS DAY AND VALUATION PERIOD. A Business Day is
each day that the New York Stock Exchange is open for
trading, except for the day after Thanksgiving, the
Tuesday after Christmas (in 2000) and any day on
which the Home Office is closed because of a
weather-related or comparable type of emergency. A
Valuation Period is the period between the close of
business (3:00 p.m. central time) on a Business Day
and the close of business on the next Business Day.
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(6) LOAN PROVISIONS. SEE Item 21.
(7) PAYMENT OF BENEFITS. The Company will usually mail
proceeds of complete surrenders, partial surrenders
and Policy Loans within seven days after the
Policyowner's signed request is received at the Home
Office. The Company will usually mail death proceeds
within seven days after receipt of Due Proof of
Death, and maturity benefits within seven days of the
Maturity Date. However, payment of any amount upon
complete surrender or partial surrender, payment of
any policy loan, and payment of death proceeds or
benefits at maturity may be postponed whenever: (a)
the New York Stock Exchange is closed other than
customary weekend and holiday closings, or trading on
the New York Stock Exchange is restricted as
determined by the Commission; (b) the Commission by
order permits postponement for the protection of
Policyowners; or (c) an emergency exists, as
determined by the Commission, as a result of which
disposal of the securities is not reasonably
practicable or it is not reasonably practicable to
determine the value of the net assets of the Variable
Account.
Payments under the Policy which are derived from any
amount paid to the Company by check or draft may be
postponed until such time as the Company is satisfied
that the check or draft has cleared the bank upon
which it is drawn.
(8) PAYMENT OPTIONS. Death proceeds and Cash Value paid
at maturity, or upon complete or partial surrender
of a Policy, may be paid in whole or in part under a
payment option. There are currently five payment
options available. Payments may also be made under
any new payment option available at the time proceeds
become payable. In addition, proceeds may be paid in
any other manner acceptable to the Company.
An option may be designated in the application or by
notifying the Company in writing at its Home Office.
During the lifetime of the Insured, the Policyowner
may select a payment option; in addition, during that
time the Policyowner may change a previously selected
option by sending written notice to the Company
requesting the cancellation of the prior option and
the designation of a new option. If the Policyowner
has not chosen an option prior to the Insured's
death, the Beneficiary may choose an option. The
Beneficiary may change a payment option by sending a
written request to the Company, provided that a prior
option chosen by the Policyowner is not in effect.
If no option is chosen, the Company will pay the
proceeds of the Policy in one sum. The Company will
also pay the proceeds in one sum if (i) the
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proceeds are less than $2,000; (ii) periodic payments
would be less than $20; or (iii) the payee is an
assignee, estate, trustee, partnership, corporation,
or association.
Amounts paid under a payment option are paid pursuant
to a payment contract. Proceeds applied under a
payment option earn interest at a rate guaranteed to
be no less than 3% compounded yearly. The Company may
be crediting higher interest rates on the effective
date of the payment contract. The Company may, but is
not obligated to, declare additional interest to be
applied to such funds.
If a payee dies, any remaining payments will be paid
to a contingent payee. At the death of the last
payee, the commuted value of any remaining payments
will be paid to the last payee's estate. A payee may
not withdraw funds under a payment option unless the
Company has agreed to such withdrawal in the payment
contract. The Company reserves the right to defer a
withdrawal for up to six months and to refuse to
allow partial surrenders of less than $250.
Payments under Options 2, 3, 4 or 5 will begin as of
the date of the Insured's death, on complete or
partial surrender, or on the Maturity Date. Payments
under Option 1 will begin at the end of the first
interest period after the date proceeds are otherwise
payable.
The options currently available are:
Option 1 -- Interest Income. Periodic
payments of interest earned from the
proceeds will be paid. Payments can be
annual, semiannual, quarterly or monthly,
as-selected by the payee, and will begin at
the end of the first period chosen. Proceeds
left under this plan will earn interest at a
rate determined by the Company, in no event
less than 3% compounded yearly. The payee
may withdraw all or part of the proceeds at
any time.
Option 2 -- Income for a Fixed Term.
Periodic payments will be made for a fixed
term not longer than 30 years. Payments can
be annual, semi-annual, quarterly or
monthly. Guaranteed amounts payable under
the plan will earn interest at a rate
determined by the Company, in no event less
than 3% compounded yearly.
Option 3 -- Life Income with Term Certain.
Equal periodic payments will be made for a
guaranteed minimum period elected. If the
payee lives longer than the minimum period,
payments will continue for his or her life.
The minimum period can be 0, 5, 10,
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15 or 20 years. Guaranteed amounts payable
under this plan will earn interest at a rate
determined by the Company, in no event less
than 3% compounded yearly.
Option 4 -- Income of a Fixed Amount. Equal
periodic payments of a definite amount will
be paid. Payments can be annual,
semi-annual, quarterly or monthly. The
amount paid each period must be at least $20
for each $1,000 of proceeds. Payments will
continue until the proceeds are exhausted.
The last payment will equal the amount of
any unpaid proceeds. Unpaid proceeds will
earn interest at a rate determined by the
Company, in no event less than 3% compounded
yearly.
Option 5 -- Joint and Two-Thirds Survivor
Monthly Life Income. Equal monthly payments
will be made for as long as two payees live.
The guaranteed amount payable under this
plan will earn interest at a minimum rate of
3% compounded yearly. When one payee dies,
payments of two-thirds of the original
monthly payment will be made to the
surviving payee. Payments will stop when the
surviving payee dies.
(9) ADDITIONAL INSURANCE BENEFITS. Subject to certain
requirements, one or more of the following additional
insurance benefits may be added to a Policy by rider:
(i) Cost of Living Increase; (ii) Waiver of Charges;
(iii) Other Adult Universal Life Insurance; (iv)
Children's Term Insurance; and (v) Guaranteed
Insurability Option in a VUL and (i) Last Survivor
Universal Cost of Living Increase; (ii) Universal
Term Life Insurance; and (iii) Estate Protector
4-Year Non-Renewable Last Survivor Term in an LSVUL.
The cost of any additional insurance benefits will be
deducted as part of the monthly deduction.
INFORMATION CONCERNING THE SECURITIES UNDERLYING THE TRUST'S SECURITIES
11. Describe briefly the kind or type of securities comprising the unit of
specified securities in which security holders have an interest. (If
the unit consists of a single security issued by an investment company,
name such investment company and furnish a description of the type of
securities comprising the portfolio of such investment company.)
The Variable Account invests in shares of the Investment Options. The
Investment Options currently include the Value Growth Portfolio, High
Grade Bond Portfolio, High Yield Bond Portfolio, Money Market Portfolio
and Blue chip Portfolio of EquiTrust Variable Insurance Series Fund,
the VIP Contrafund Portfolio, VIP Growth Portfolio, VIP Growth & Income
Portfolio, VIP Index 500 Portfolio and VIP Overseas Portfolio of
Fidelity Variable Insurance Products Fund; the International Stock
Portfolio of T. Rowe
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Price International Series, Inc. and the Mid-Cap Growth Portfolio, New
America Growth Portfolio and Personal Strategy Portfolio of T. Rowe
Price Equity Series, Inc. The Variable Account may, in the future,
provide for additional investment options. Each Investment Option has
its own investment objectives and the income and losses for each
Investment Option will be determined separately.
The investment objectives and policies of each Investment Option,
including a description of risks and other information, may be found in
the prospectus for each Investment Option. There is no assurance that
any Investment Option will achieve its stated objectives.
12. If the trust is the issuer of periodic payment plan certificates and if
any underlying securities were issued by another investment company,
furnish the following information for each such company:
(a) Name of company.
(b) Name and principal business address of depositor.
(c) Name and principal business address of trustee or custodian.
(d) Name and principal business address of principal underwriter.
(e) The period during which the securities of such company have
been the underlying securities.
The name, address, custodian, and principal underwriter for each
Investment Option, where applicable, may be found in the prospectus for
each Investment Option.
INFORMATION CONCERNING LOADS, FEES, CHARGES AND EXPENSES
13. (a) Furnish the following information with respect to each
load, fee, expense or charge to which (1) principal payments,
(2) underlying securities, (3) distributions, (4) cumulated or
reinvested distributions or income, and (5) redeemed or
liquidated assets of the trust's securities are subject:
(A) the nature of such load, fee, expense or charge;
(B) the amount thereof;
(C) the name of the person to whom such amounts
are paid and his relationship to the trust;
(D) the nature of the services performed by such
person in consideration for such load, fee,
expense or charge.
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(1) PRINCIPAL PAYMENTS.
PREMIUM EXPENSE CHARGE. The Net Premium equals the
premium paid less a premium expense charge. In a VUL,
the premium expense charge is equal to a sales charge
of 5% and a premium tax of 2%, while in an LSVUL, the
premium expense charge is equal to a maximum of 7% of
premium up to the Minimum Initial Premium, and 2% of
each premium in excess of the Minimum Initial
Premium. The premium expense charge is used to
compensate the Company for expenses incurred in
connection with the distribution of the Policies and
for premium taxes imposed by various states and
subdivisions thereof.
(2) UNDERLYING SECURITIES.
The investment advisory fee and other expenses
applicable to each Investment Option is described in
the prospectus for each Investment Option.
(3) DISTRIBUTIONS.
No load, fee, expense or charge is assessed in
connection with distributions.
(4) CUMULATED OR REINVESTED DISTRIBUTIONS OR INCOME.
All income and other distributions earned by the
Variable Account are reinvested, without charge, at
net asset value in shares of the Portfolio making the
distribution.
(5) REDEEMED OR LIQUIDATED ASSETS.
To compensate the Company for costs incurred in
accomplishing a surrender, a surrender charge equal
to the lesser of $25 or 2.0% of the amount partially
or fully surrendered will apply to under a VUL. (This
same calculation will be considered for the partial
withdrawal fee in an LSVUL.) In an LSVUL, a surrender
charge will apply to any surrender during the first
ten Policy Years, as well a during the first ten
years following an increase in Specified Amount. If
not paid in cash, the surrender charge will be
deducted from the remaining Cash Value.
(b) For each installment payment type of periodic payment plan
certificate of the trust, furnish the following information
with respect to sales load and other deductions from principal
payments.
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SEE answer to Item 13(a) for a description of the deductions
for sales load and other deductions from payments.
(c) State the amount of total deductions as a percentage of the
net amount invested for each type of security issued by the
trust. State each different sales charge available as a
percentage of the public offering price and as a percentage of
the net amount invested. List any special purchase plans or
methods established by rule or exemptive order that reflect
scheduled variations in, or elimination of, the sales load;
and identify each class of individuals or transactions to
which such plans apply.
The amount of sales load as a percentage of premiums paid is
contained in Item 13(a).
(d) Explain fully the reasons for any difference in the price at
which securities are offered generally to the public, and the
price at which securities are offered for any class of
transactions to any class or group of individuals, including
officers, directors, or employees of the depositor, trustee,
custodian or principal underwriter.
Not applicable.
(e) Furnish a brief description of any loads, fees, expenses, or
charges not covered in Item 13(a) which may be paid by
security holders in connection with the trust or its
securities.
(1) MONTHLY DEDUCTION.
Charges will be deducted monthly from the Cash Value
of each Policy ("monthly deduction") to compensate
the Company for the cost of insurance coverage and
any additional benefits added by rider, for
underwriting and start-up expenses in connection with
issuing a Policy, and for certain administrative
costs. The monthly deduction will be deducted on the
Policy Date and on each Monthly Deduction Day. It
will be deducted from the Declared Interest Option
and each Subaccount in the same proportion that the
Policy's Net Cash Value in the Declared Interest
Option and the Policy's Cash Value in each Subaccount
bear to the total Net Cash Value of the Policy. For
purposes of making deductions from the Declared
Interest Option and the Subaccounts, Cash Values will
be determined as of the end of the Business Day
coinciding with or immediately following the Monthly
Deduction Day. Because portions of the monthly
deduction, such as the cost of insurance, can vary
from month to month, the monthly deduction itself
will vary in amount from month to month.
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The monthly deduction will be made on the Business
Day coinciding with or immediately following each
Monthly Deduction Day and will equal: (a) the cost of
insurance for the Policy; plus (b) the cost of any
optional insurance benefits added by rider; plus (c)
the monthly policy expense charge(s).
During the first twelve Policy Months and during the
twelve Policy Months immediately following an
increase in Specified Amount, the monthly deduction
will include a first year monthly administrative
charge.
COST OF INSURANCE. This charge is designed to
compensate the Company for the anticipated cost of
paying death proceeds to Beneficiaries of those
Insureds who die prior to the Maturity Date. The cost
of insurance is determined on a monthly basis, and is
determined separately for the initial Specified
Amount and for any subsequent increases in Specified
Amount. The Company will determine the monthly cost
of insurance charge by dividing the applicable cost
of insurance rate or rates by 1,000 and multiplying
the result by the net amount at risk for each Policy
Month.
NET AMOUNT AT RISK. Under Option A the net amount at
risk for a Policy Month is equal to (a) divided by
(b), and under Option B the net amount at risk for a
Policy Month is equal to (a) divided by (b), minus
(c), where: (a) is the Specified Amount; (b) is
1.0032737; and (c) is the Cash Value.
The Specified Amount and the Cash Value will be
determined as of the end of the Business Day
coinciding with or immediately following the Monthly
Deduction Day.
The net amount at risk is determined separately for
the initial Specified Amount and any increases in
Specified Amount. In determining the net amount at
risk for each Specified Amount, the Cash Value will
be first considered a part of the initial Specified
Amount. If the Cash Value exceeds the initial
Specified Amount, it will be considered to be a part
of any increase in the Specified Amount in the same
order as the increases occurred.
COST OF INSURANCE RATE. The cost of insurance rate
for the initial Specified Amount will be based on the
Insured's sex, premium class, and Attained Age (or
Joint Insureds' sex, premium class and Joint Equal
Age, as applicable). For any increase in Specified
Amount, the cost of insurance rate will be based on
the Insured's sex, premium class, and age nearest
birthday on the effective date of the increase.
Actual cost of insurance rates may change and the
actual monthly cost of insurance rates will be
24
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determined by the Company based on its expectations
as to future mortality experience. However, the
actual cost of insurance rates will never be greater
than the guaranteed maximum cost of insurance rates
set forth in the Policy. These guaranteed rates are
based on the 1980 Commissioners' Standard Ordinary
Non-Smoker and Smoker Mortality Table. Current cost
of insurance rates are generally less than the
guaranteed maximum rates. Any change in the cost of
insurance rates will apply to all persons of the same
age, sex, and premium class whose Policies have been
in force the same length of time.
The cost of insurance rates generally increase as the
Insured's Attained Age increases. The premium class
of an Insured also will affect the cost of insurance
rate. The Company currently places Insureds into a
standard premium class or into premium classes
involving a higher mortality risk. In an otherwise
identical Policy, Insureds in the standard premium
class will have a lower cost of insurance rate than
those in premium classes involving higher mortality
risk. The standard premium class is also divided into
two categories: tobacco and non-tobacco. The Company
may offer preferred classes in addition to the
standard tobacco and non-tobacco classes. Non-tobacco
Insureds will generally have a lower cost of
insurance rate than similarly situated Insureds who
use tobacco, and preferred plus Insured's will
generally have a lower cost of insurance rate than
similarly situated standard Insureds.
The cost of insurance rate is determined separately
for the initial Specified Amount and for the amount
of any increase in Specified Amount. In calculating
the cost of insurance charge, the rate for the
premium class on the Policy Date will be applied to
the net amount at risk for the initial Specified
Amount; for each increase in Specified Amount, the
rate for the premium class applicable to the increase
will be used. However, if the death benefit is
calculated as the Cash Value times the specified
amount factor, the rate for the premium class for the
most recent increase that required evidence of
insurability will be used for the amount of death
benefit in excess of the total Specified Amount.
ADDITIONAL INSURANCE BENEFITS. The monthly deduction
will include charges for any additional benefits
provided by rider.
MONTHLY POLICY EXPENSE CHARGE. The Company has
primary responsibility for the administration of the
Policy and the Variable Account. Policy expenses
include premium billing and collection,
recordkeeping, processing death benefit claims, cash
surrenders or withdrawals and Policy changes, and
reporting and overhead costs. As reimbursement for
Policy expenses related to the maintenance of each
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Policy and the Variable Account, the Company assesses
a monthly policy expense charge against each Policy.
This charge is guaranteed not to exceed $3 per Policy
Month in a VUL and $14 per Policy Month in an LSVUL.
In an LSVUL, the Company applies an additional charge
guaranteed not to exceed $0.05 per $1,000 of
Specified Amount.
FIRST YEAR MONTHLY ADMINISTRATIVE CHARGE. A monthly
administrative charge will be deducted from Cash
Value as part of the monthly deduction during the
first twelve Policy Months and during the twelve
Policy Months immediately following an increase in
Specified Amount. The charge will compensate the
Company for first year underwriting, processing and
start-up expenses incurred in connection with the
Policy and the Variable Account. These expenses
include the cost of processing applications,
conducting medical examinations, determining
insurability and the Insured's premium class, and
establishing policy records. In a VUL, the first year
monthly administrative charge per $1,000 of Specified
Amount depends on the Specified Amount of the Policy
and the age of the Insured. In an LSVUL, the first
year monthly administrative charge is guaranteed not
to exceed $0.14 per $1,000 of Specified Amount.
FIRST YEAR MONTHLY EXPENSE CHARGE. In an LSVUL, a
monthly expense charge guaranteed not to exceed $14
per Policy Month will be deducted from Cash Value as
part of the monthly deduction during the first 12
Policy Months.
(2) TRANSACTION CHARGES.
A transfer charge of $25 may be imposed for the
second and each subsequent transfer during a Policy
Year to compensate the Company for the costs in
effectuating the transfer. Once a Policy is issued,
the amount of this charge is guaranteed for the life
of the Policy. The transfer charge, unless paid in
cash, will be deducted from the amount transferred.
The transfer charge will not be imposed on transfers
that occur as a result of Policy Loans, the exercise
of the special transfer privilege, or the
reallocation of Cash Value to the Subaccounts and the
Declared Interest Option following acceptance of the
Policy by the Policyowner.
Currently there is no charge for changing the net
premium allocation instructions.
(3) MORTALITY AND EXPENSE RISK CHARGE.
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The Company deducts a daily mortality and expense
risk charge from each Subaccount at an annual rate
of up to .90% of the average daily net assets of
the Subaccounts.
The mortality risk assumed by the Company is that
Insureds may die sooner than anticipated and that
therefore the Company will pay an aggregate amount of
life insurance proceeds greater than anticipated. The
expense risk assumed is that expenses incurred in
issuing and administering the Policies will exceed
the amounts realized from the administrative charges
assessed against the Policies.
(4) FEDERAL TAXES.
Currently no charge is made to the Variable Account
for federal income taxes that may be attributable to
the Variable Account. The Company may, however, make
such a charge in the future. Charges for other taxes,
if any, attributable to the Variable Account may also
be made.
(5) INVESTMENT OPTION EXPENSES.
The value of net assets of the Variable Account will
reflect the investment advisory fee and other
expenses incurred by the Fund.
(f) State whether the depositor, principal underwriter, custodian
or trustee, or any affiliated person of the foregoing may
receive profits or other benefits not included in answer to
Item 13(a) or 13(d) through the sale or purchase of the
trust's securities or underlying securities or interests in
underlying securities, and describe fully the nature and
extent of such profits or benefits.
Neither the Company nor the principal underwriter nor any
affiliated person of the foregoing may receive any profit or
any other benefit from premium payments under the Policy or
the investments held in the Variable Account not included in
answer to Item 13(a) or (d) through the sale or purchase of
the Policy or shares of the Investment Options, except that
(1) the Company may receive a profit to the extent that the
cost of insurance built into the Policy exceeds the actual
cost of insurance needed to pay benefits; (2) favorable
mortality or expense experience may cause the insurance
provided under the Policy to be profitable to the Company; (3)
the Company will compensate certain others, including the
Company agents, for services rendered in connection with the
distribution of the Policy, as described in Item 38, but such
payments will be made from the Company's General Account; and
(4) the Adviser will receive an advisory fee from the Fund, as
described in Item 13(a)(2).
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(g) State the percentage that the aggregate annual charges and
deductions for maintenance and other expenses of the trust
bear to the dividend and interest income from the trust
property during the period covered by the financial statements
filed herewith.
Not applicable.
INFORMATION CONCERNING THE OPERATIONS OF THE TRUST
14. Describe the procedure with respect to applications (if any) and the
issuance and authentication of the trust's securities, and state the
substance of the provisions of any indenture or agreement pertaining
thereto.
Before it will issue a Policy, the Company must receive a completed
application and an initial premium at its Home Office. A Policy
ordinarily will be issued only for Insureds who are 0 to 80 years of
age at their birthday nearest the Policy Date in a VUL, and for Joint
Insured who have a Joint Equal Age of 18 to 85 years of age at their
last birthday in an LSVUL, who supply satisfactory evidence of
insurability to the Company.
Acceptance is subject to the Company's underwriting rules and the
Company may, in its sole discretion, reject any application or premium
for any reason. The minimum Specified Amount for which a Policy will be
issued is normally $25,000 in a VUL and $100,000 in an LSVUL, although
the Company may in its discretion issue Policies with Specified Amounts
of less than $25,000 or $100,000, respectively.
The Policy Date will be the later of (i) the date of the initial
application, or (ii) if additional medical or other information is
required pursuant to the Company's underwriting rules, the date all
such additional information is received by the Company at its Home
Office. The Policy Date may also be any other date mutually agreed to
by the Company and the Policyowner. If the later of (i) and (ii) above
is the 29th, 30th or 31st of any month, the Policy Date will be the
28th of such month. The Policy Date is the date used to determine
Policy Years, Policy Months, and Policy Anniversaries. The Policy Date
may, but will not always, coincide with the effective date of insurance
coverage under the Policy.
The effective date of insurance coverage under the Policy will be the
latest of (i) the Policy Date, (ii) if an amendment to the initial
application is required pursuant to the Company's underwriting rules,
the date the Insured signs the last such amendment, or (iii) the date
on which the full initial premium is received by the Company at its
Home Office.
15. Describe the procedure with respect to the receipt of payments from
purchasers of the trust's securities and the handling of the proceeds
thereof, and state the substance of the provisions of any indenture or
agreement pertaining thereto.
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Before it will issue a Policy, the Company may require the Policyowner
to pay an initial premium that, that, when reduced by the premium
expense charge, will be sufficient to pay the monthly deduction for the
first Policy Month. Premiums are payable at the Company's Home Office.
SEE ALSO Items 13(a), 14-16 and 18.
The Policyowner has considerable flexibility to alter the amount,
frequency, and time period over which premiums are paid. The schedule
of planned periodic premiums is not mandatory and, subject to the
limitations described below, the Policyowner may make unscheduled
premium payments, skip periodic premium payments and change the
schedule of planned periodic premiums.
In no event may the total of all premiums paid, both planned periodic
and unscheduled, exceed the current maximum premium limitations
established by federal tax laws. If at any time a premium is paid which
would result in total premiums exceeding the current maximum premium
limitation, the Company will only accept that portion of the premium
which will make total premiums equal the maximum. Any part of the
premium in excess of that amount will be returned and no further
premiums will be accepted until allowed by the applicable maximum
premium limitations.
16. Describe the procedure with respect to the acquisition of underlying
securities and the disposition thereof, and state the substance of the
provisions of any indenture or agreement pertaining thereto.
The Variable Account purchases or redeems shares of the Fund based on a
netting of all transactions for that day, including the amount of Net
Premiums invested in the Variable Account, Policy Loans, loan
repayments, payments upon surrender, charges, and the payment of
benefits to be effected on that day.
17. (a) Describe the procedure with respect to withdrawal or
redemption by security holders.
The procedures with respect to surrenders or redemption of
security holders are described in response to Items 10(c),
(d), (e) and (i).
(b) Furnish the names of any persons who may redeem or repurchase,
or are required to redeem or repurchase, the trust's
securities or underlying securities from security holders, and
the substance of the provisions of any indenture or agreement
pertaining thereto.
The Company is required to process all surrender requests as
described in Item 10(c). The Fund will redeem its shares upon
the Company's request in accordance with the Investment
Company Act of 1940. Redeemed shares may later be reissued.
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(c) Indicate whether repurchased or redeemed securities will be
canceled or may be resold.
A Policy, once completely surrendered, may not be resold or
reinstated.
18. (a) Describe the procedure with respect to the receipt, custody
and disposition of the income and other distributable funds of
the trust and state the substance of the provisions of any
indenture or agreement pertaining thereto.
All dividend and capital gains distributions of the Investment
Option will be automatically reinvested in shares of the
distributing Investment Option at its net asset value on the
record date.
(b) Describe the procedure, if any, with respect to the
reinvestment of distributions to security holders and state
the substance of the provisions of any indenture or agreement
pertaining thereto.
Not applicable.
(c) If any reserves or special funds are created out of income or
principal, state with respect to each such reserve or fund the
purpose and ultimate disposition thereof, and describe the
manner of handling of same.
Net Premiums placed in the Variable Account constitute certain
reserves for benefits under the Policy.
(d) Submit a schedule showing the periodic and special
distributions which have been made to security holders during
the three years covered by the financial statements filed
herewith. State for each such distribution the aggregate
amount and amount per share. If distributions from sources
other than current income have been made, identify each such
other source and indicate whether such distribution represents
the return of principal payments to security holders. If
payments other than cash were made, describe the nature
thereof, the account charged and the basis of determining the
amount of such charge.
No distributions have been made.
19. Describe the procedure with respect to the keeping of records and
accounts of the trust, the making of reports and the furnishing of
information to security holders, and the substance of the provisions of
any indenture or agreement pertaining thereto.
The Company has primary responsibility for the administration of the
Policy and the Variable Account. Administrative expenses include
premium billing and collection; recordkeeping; processing death benefit
claims, cash surrenders and Policy changes; and
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reporting and overhead costs. As reimbursement for administrative
expenses related to the maintenance of each Policy and the Variable
Account, the Company assesses a monthly policy expense charge against
each Policy.
The Company may administer the Policy itself. The Company may purchase
administrative services from such sources (including affiliates) as may
be available. Such services will be acquired on a basis which, in the
Company's sole discretion, affords the best services at the lowest
cost. The Company reserves the right to select a company to provide
services which the Company deems, in its sole discretion, is the best
able to perform such services in a satisfactory manner even though the
costs for such services may be higher than would prevail elsewhere.
The Company will send such reports as are required by the Investment
Company Act of 1940 and regulations promulgated thereunder.
The Company will mail to the Policyowner, at least once each year, an
annual report. The annual report will show the current death benefit,
the Cash Value in each Subaccount and in the Declared Interest Option,
outstanding Policy Debt and premiums paid, partial surrenders or
surrenders made and charges assessed since the last report. The report
will also include any other information required by state law or
regulation. Each person having a voting interest in a Subaccount will
receive proxy material, reports, and other materials relating to the
corresponding Investment Option.
20. State the substance of the provisions of any indenture or agreement
concerning the trust with respect to the following:
(a) Amendments to such indenture or agreement.
Not applicable.
(b) The extension or termination of such indenture or agreement.
Not applicable.
(c) The removal or resignation of the trustee or custodian, or the
failure of the trustee or custodian to perform its duties,
obligations and functions.
The Company acts as custodian. There are no provisions
relating to the removal or resignation of the custodian or the
failure of the custodian to perform its duties, obligations
and functions.
(d) The appointment of a successor trustee and the procedure if a
successor trustee is not appointed.
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The Variable Account has no trustee.
(e) The removal or resignation of the depositor, or the failure of
the depositor to perform its duties, obligations and
functions.
There are no provisions relating to the removal or resignation
of the depositor or the failure of the depositor to perform
its duties, obligations and functions.
(f) The appointment of a successor depositor and the procedure if
a successor depositor is not appointed.
There are no provisions relating to the appointment of a
successor depositor and the procedure if a successor depositor
is not appointed.
21. (a) State the substance of the provisions of any indenture or
agreement with respect to loans to security holders.
So long as the Policy remains in force and has a positive Net
Cash Value, a Policyowner may borrow money from the
Company at any time using the Policy as the sole security for
the Policy Loan. The maximum amount that may be borrowed at
any time is 90% of the Net Cash Value as of the end of the
Valuation Period during which the request for a Policy Loan is
received at the Home Office. The Company's claim for repayment
of Policy Debt has priority over the claims of any assignee or
other person.
During any time that there is outstanding Policy Debt,
payments made by the Policyowner will be treated first as
payment of outstanding Policy Debt, unless the Policyowner
indicates that the payment should be treated otherwise. Where
no indication is made, any portion of a payment that exceeds
the amount of any outstanding Policy Debt will be treated as a
premium payment.
When a Policy Loan is made, an amount equal to the Policy Loan
will be segregated within the Declared Interest Option as
security for the Policy Loan. If, immediately prior to the
Policy Loan, the Cash Value in the Declared Interest Option
less Policy Debt outstanding immediately prior to such Policy
Loan is less than the amount of such Policy Loan, the
difference will be transferred from the Subaccounts which have
Cash Value in the same proportions that the Policy's Cash
Value in each Subaccount bears to the Policy's total Cash
Value in the Variable Account. Cash Values will be determined
as of the end of the Valuation Period during which the request
for the Policy Loan is received at the Home Office.
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Policy Loan proceeds will normally be mailed to the
Policyowner within seven days after receipt of a written
request. Postponement of a loan may take place under certain
circumstances.
Amounts segregated within the Declared Interest Option as
security for Policy Debt will bear interest at an effective
annual rate set by the Company.
The interest rate charged on Policy Loans is not fixed. In a
VUL, it will be the rate shown in the Policy on the policy
data page. The Company may at any time elect to change the
interest rate, subject to the following conditions: (i) the
rate may not exceed 7.4% per year in advance (which is equal
to an effective rate of 8%); (ii) any increase in the interest
rate may not exceed 1% per calendar year, and (iii) changes in
the interest rate may not occur more often than once in any
twelve-month period. In an LSVUL, the maximum annual loan
interest rate will be no greater than the "Published Monthly
Average of the Composite Yield on Seasoned Corporate Bonds" as
published by Moody's Investors Service, Inc. or any successor
thereto for the calendar month ending two months before the
date on which the rate is determined; or 5.5%. The Company may
at any time elect to change the interest rate. The Company
will send notice of any change in rate to the Policyowner. The
new rate will take effect on the Policy Anniversary coinciding
with or next following the date the rate is changed.
Interest is payable in advance at the time any Policy Loan is
made (for the remainder of the Policy Year) and on each Policy
Anniversary thereafter (for the entire Policy Year) so long as
there is Policy Debt outstanding. Interest payable at the time
a Policy Loan is made will be subtracted from the loan
proceeds. Thereafter, interest not paid when due will be added
to the existing Policy Debt and bear interest at the same rate
charged for Policy Loans. The amount equal to unpaid interest
will be segregated within the Declared Interest Option in the
same manner that amounts for Policy Loans are segregated
within the Declared Interest Option.
Because interest is charged in advance, any interest that has
not been earned will be added to the death benefit payable at
the Insured's death and to the Cash Value upon complete
surrender, and will be credited to the Cash Value in the
Declared Interest Option upon repayment of Policy Debt.
Amounts transferred from the Variable Account as security for
Policy Loans will no longer participate in the investment
performance of the Variable Account. All amounts held in the
Declared Interest option as security for Policy Debt will be
credited with interest on each Monthly Deduction Day. In a
VUL, interest will be credited at an effective annual rate of
between 4.5% and 6%; and in an LSVUL, interest will be
credited at an effective annual rate equal to the greater of
4% or the current effective loan interest rate minus no more
than 3%, as determined and
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declared by the Company. No additional interest will be
credited to these amounts. The interest credited will remain
in the Declared Interest Option unless and until transferred
by the Policyowner to the Variable Account, but will not be
segregated within the Declared Interest Option as security for
Policy Debt. In an LSVUL, the Company may allow a loan spread
of 0% on the gain in a Policy in effect a minimum of ten
years.
Policy Debt equals the sum of all unpaid Policy Loans and any
due and unpaid policy loan interest. If Net Cash Value is
insufficient on a Monthly Deduction Day to cover the monthly
deduction, the Company will notify the Policyowner. To avoid
lapse and termination of the Policy without value, the
Policyowner must, during the Grace Period, make a premium
payment that, when reduced by the premium expense charge, will
be at least equal to three times the monthly deduction due on
such Monthly Deduction Day.
Policy Debt may be repaid in whole or in part any time during
the Insured's life and before the Maturity Date so long as the
Policy is in force. Any Policy Debt not repaid is subtracted
from the death benefit payable at the Insured's death, from
Cash Value upon complete surrender, or from the maturity
benefit. Upon repayment of Policy Debt, the Cash Value in the
Declared Interest Option securing the repaid portion of the
Policy Debt will no longer be segregated within the Declared
Interest Option as security for the Policy Debt, but will
remain in the Declared Interest Option unless and until
transferred to the Variable Account by the Policyowner.
(b) Furnish a brief description of any procedure or arrangement by
which loans are made available to security holders by the
depositor, principal underwriter, trustee or custodian, or any
affiliated person of the foregoing.
Proceeds of a Policy Loan will normally be mailed within seven
days after receipt of a written request for such loan. Payment
of any Policy Loan may be postponed whenever: (i) the New York
Stock Exchange is closed other than customary weekend and
holiday closings, or trading on the New York Stock Exchange is
restricted as determined by the Commission; (ii) the
Commission by order permits postponement for the protection of
Policyowners; (iii) an emergency exists, as determined by the
Commission, as a result of which disposal of securities is not
reasonably practicable or it is not reasonably practicable to
determine the value of the net assets of the Variable Account.
In addition, the payment of Policy Loans allocated to the
Declared Interest Option may be delayed for up to six months.
In addition, payment of loan proceeds made available as a
result of Cash Value derived from premiums paid by check or
draft may be delayed until such time as the Company is
satisfied that the check or draft has cleared the bank upon
which it is drawn.
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SEE paragraph (a) of this Item.
(c) If such loans are made, furnish the aggregate amount of loans
outstanding at the end of the last fiscal year, the amount of
interest collected during the last fiscal year allocated to
the depositor, principal underwriter, trustee or custodian or
affiliated person of the foregoing and the aggregate amount of
loans in default at the end of the last fiscal year covered by
financial statements filed herewith.
Not applicable.
22. State the substance of the provisions of any indenture or agreement
with respect to limitations on the liabilities of the depositor,
trustee or custodian, or any other party to such indenture or
agreement.
There is no such provision or agreement.
23. Describe any bonding arrangement for officers, directors, partners or
employees of the depositor or principal underwriter of the trust,
including the amount of coverage and the type of bond.
Additional protection for the assets of the Variable Account is
afforded by a blanket fidelity bond issued by Chubb Group of Insurance
Companies in the amount of $5,000,000 covering all of the officers and
employees of the Company.
24. State the substance of any other material provisions of any indenture
or agreement concerning the trust or its securities and a description
of any other material functions or duties of the depositor, trustee or
custodian not stated in Item 10 or Items 14 to 23 inclusive.
THE CONTRACT. The Policy is issued in consideration of the statements
in the application and the payment of the initial premium. The Policy,
the application, and any supplemental applications and endorsements
make up the entire contract. In the absence of fraud, the statements
made in an application or supplemental application will be treated as
representations and not as warranties. No statement will void the
Policy or be used in defense of a claim unless contained in the
application or any supplemental application.
INCONTESTABILITY. The Policy is incontestable, except for fraudulent
statements made in the application or supplemental applications, after
it has been in force during the lifetime of the Insured (or Joint
Insureds, as applicable) for two years from the Policy Date or date of
reinstatement. This provision does not apply to riders that provide
disability or accidental death benefits. Any increase in Specified
Amount will be incontestable only after it has been in force during the
lifetime of the Insured for two years from the effective date of the
increase.
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CHANGE OF PROVISIONS. The Company reserves the right to change the
Policy, in the event of future changes in the federal tax law, to the
extent required to maintain the Policy's qualification as life
insurance under federal tax law.
Except as provided in the foregoing paragraph, no one can change any
part of the Policy except the Policyowner and the President, a Vice
President, or the Secretary or Assistant Secretary of the Company. Both
must agree to any change and such change must be in writing. No agent
may change the Policy or waive any of its provisions.
MISSTATEMENT OF AGE OR SEX. If any Insured's age or sex was misstated
in the application, each benefit and any amount to be paid under the
Policy will be adjusted to reflect the correct age and sex.
SUICIDE EXCLUSION. If the Policy is in force and the Insured in a VUL
(or last Joint Insured in an LSVUL) commits suicide, while sane or
insane, within two years from the Policy Date, life insurance proceeds
payable under the Policy will be limited to all premiums paid, reduced
by any outstanding Policy Debt and any partial surrenders, and
increased by any unearned loan interest. If the Policy is in force and
the Insured commits suicide, while sane or insane, within two years
from the effective date of any increase in Specified Amount, any
increase in the death benefit resulting from the requested increase in
specified amount will not be paid. Instead, the Company will refund to
the Policyowner an amount equal to the total cost of insurance applied
to the increase.
ANNUAL REPORT. At least once each year, an annual report will be sent
to each Policyowner. The report will show the current death benefit,
the Cash Value in each Subaccount and in the Declared Interest Option,
outstanding Policy Debt, and premiums paid, partial surrenders made,
and charges assessed, since the last report. The report will also
include any other information required by state law or regulation.
Further, the Company will send the Policyowner the reports required by
the Investment Company Act of 1940.
NON-PARTICIPATION. The Policy does not participate in the Company's
profits or surplus earnings. No dividends are payable.
OWNERSHIP OF ASSETS. The Company shall have the exclusive and absolute
ownership and control over assets, including the assets of the Variable
Account.
WRITTEN NOTICE. Any written notice should be sent to the Company at its
Home Office. The notice should include the policy number and the
Insured's full name. Any notice sent by the Company to a Policyowner
will be sent to the address shown in the application unless an
appropriate address change form has been filed with the Company.
POSTPONEMENT OF PAYMENTS. The Company will usually mail the proceeds of
complete surrenders, partial surrenders and Policy Loans within seven
days after the Policyowner's
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signed request is received at the Home Office. The Company will
usually mail death proceeds within seven days after receipt of Due
Proof of Death, and maturity benefits within seven days of the
Maturity Date. However, payment of any amount upon complete or partial
surrender, payment of any policy loan, and payment of death proceeds
or benefits at maturity may be postponed whenever: (a) the New York
Stock Exchange is closed other than customary weekend and holiday
closings, or trading on the New York Stock Exchange is restricted as
determined by the Commission; (b) the Commission by order permits
postponement for the protection of Policyowners; or (c) an emergency
exists, as determined by the Commission, as a result of which disposal
of the securities is not reasonably practicable or it is not
reasonably practicable to determine the value of the net assets of the
Variable Account.
Transfers may also be postponed under these circumstances.
Payments under the Policy which are derived from any amount paid to the
Company by check or draft may be postponed until such time as the
Company is satisfied that the check or draft has cleared the bank upon
which it is drawn.
CONTINUANCE OF INSURANCE. The insurance under a Policy will continue
until the earlier of: (a) the end of the Grace Period following the
Monthly Deduction Day on which the Net Cash Value or Net Surrender
Value is less than the monthly deduction for the following Policy
Month; (b) the date the Policyowner surrenders the Policy for its
entire Net Cash Value (or Net Surrender Value, as applicable); (c) the
death of the Insured (or last Joint Insured, as applicable); or (d) the
Maturity Date.
Any rider to a Policy will terminate on the date specified in the
rider.
OWNERSHIP. The Policy belongs to the Policyowner. The original
Policyowner is the person named as owner in the application. Ownership
of the Policy may change according to the ownership option selected as
part of the original application or by a subsequent endorsement to the
Policy. During the Insured's (or Joint Insureds') lifetime(s), all
rights granted by the Policy belong to the Policyowner, except as
otherwise provided for in the Policy.
Special ownership rules may apply if any Insured is under legal age (as
defined by the law of the state in which the Policy is issued) on the
Policy Date.
The Policyowner may assign the Policy as collateral security. The
Company assumes no responsibility for the validity or effect of any
collateral assignment of the Policy. No assignment will bind the
Company unless in writing and until received by the Company at its Home
Office. The assignment is subject to any payment or action taken by the
Company before it received the assignment at the Home Office.
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THE BENEFICIARY. The primary Beneficiaries and contingent Beneficiaries
are designated by the Policyowner in the application. If changed, the
primary Beneficiary or contingent Beneficiary is as shown in the latest
change filed with the Company. One or more primary or contingent
Beneficiaries may be named in the application. In such case, the
proceeds will be paid in equal shares to the survivors in the
appropriate beneficiary class, unless requested otherwise by the
Policyowner.
Unless a payment option is chosen, the proceeds payable at the
Insured's death will be paid in a lump sum to the primary Beneficiary.
If the primary Beneficiary dies before the Insured (or last Joint
Insured, if applicable), the proceeds will be paid to the contingent
Beneficiary. If no Beneficiary survives the Insured (or last Joint
Insured, if applicable), the proceeds will be paid to the Policyowner
or the Policyowner's estate.
CHANGING THE POLICYOWNER OR BENEFICIARY. During the Insured's life, the
Policyowner and the Beneficiary may be changed. To make a change,
written request must be sent to the Company at its Home Office. The
request and the change must be in a form satisfactory to the Company
and must actually be received and recorded by the Company. The change
will take effect as of the date the request is signed by the
Policyowner. The change will be subject to any payment made before the
change is recorded by the Company. The Company may require return of
the Policy for endorsement.
POLICY SPLIT OPTION. In an LSVUL only, the Policyowner may split the
Policy into two single-life insurance policies, one on each of the
Joint Insureds, upon the occurrence of (1) divorce or annulment with
respect to the marriage of the Joint Insureds, or (2) a change in the
Federal Estate Tax Law. The Policyowner may elect this option subject
to the following provisions: (a) written notification must be provided
to the Company within 90 days after the effective date of one of the
two events listed above; (b) each new policy will be issued for no more
than one-half the Specified Amount of the original policy; (c) the Net
Surrender Value will be divided and allocated in proportion to the
Specified Amount of the new policy; (d) the Beneficiary of the original
policy will be the beneficiary of each new policy; (e) if the Joint
Insureds are the owners of the original policy, each will be the owner
of their new policy; (f) the new policies will be issued based on the
age and premium class for each Joint Insured on the effective date of
the election of this option; (g) this option will not be available
after the date of the first death of the Joint Insureds; and (h) the
two single-life policies may be any single permanent life policies
currently offered by the Company.
III.
ORGANIZATION, PERSONNEL AND AFFILIATED PERSONS
OF DEPOSITOR
ORGANIZATION AND OPERATIONS OF DEPOSITOR
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25. State the form or organization of the depositor of the trust, the name
of the state or other sovereign power under the laws of which the
depositor was organized and the date of organization.
The Company is a stock life insurance company incorporated in the
State of Iowa on October 30, 1944.
26. (a) Furnish the following information with respect to all fees
received by the depositor of the trust in connection with the
exercise of any functions or duties concerning securities of
the trust during the period covered by the financial
statements filed herewith.
Not applicable.
(b) Furnish the following information with respect to any fee or
any participation in fees received by the depositor from any
underlying investment company or any affiliated person or
investment adviser of such company.
Not applicable.
27. Describe the general character of the business engaged in by the
depositor including a statement as to any business other than that of
depositor of the trust. If the depositor acts or has acted in any
capacity with respect to any investment company or companies other than
the trust, state the name or names of such company or companies, their
relationship, if any, to the trust, and the nature of the depositor's
activities therewith. If the depositor has ceased to act in such named
capacity, state the date of and circumstance surrounding such
cessation.
The Company is principally engaged in offering life insurance and
annuity contracts and is admitted to do business in 18
states - Arizona, Colorado, Idaho, Iowa, Kansas, Minnesota,
Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon,
South Dakota, Utah, Washington, Wisconsin and Wyoming.
Officials and Affiliated Persons of Depositor
28. (a) Furnish as at latest practicable date the following
information with respect to the depositor of the trust, with
respect to each officer, director, or partner of the
depositor, and with respect to each natural person directly or
indirectly owning, controlling or holding with power to vote
5% or more of the outstanding voting securities of the
depositor.
(i) name and principal business address;
(ii) nature of relationship or affiliation with depositor of
the trust;
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(iii) ownership of all securities of the depositor;
(iv) ownership of all securities of the trust;
(v) other companies of which each person named above is
presently officer, director, or partner.
See answer to Item 28(b) and Item 29.
(b) Furnish a brief statement of the business experience during
the last five years of each officer, director or partner of
the depositor.
OFFICERS AND DIRECTORS OF FARM BUREAU LIFE INSURANCE COMPANY
Please refer to the Form S-6 registration statement filed with
the Securities and Exchange Commission for the Variable
Account for a current list of officers and directors of the
Company.
COMPANIES OWNING SECURITIES OF DEPOSITOR
29. Furnish as at latest practicable date the following information with
respect to each company which directly or indirectly owns, controls or
holds power to vote 5% or more of the outstanding voting securities of
the depositor: (a) name and principal business address; (b) nature of
business; (c) ownership of all securities of the depositor.
The Company is a wholly owned subsidiary of Iowa Farm Bureau
Federation. Iowa Farm Bureau Federation is an Iowa not-for-profit
corporation, the members of which are county farm bureau organizations
and their individual members. Iowa Farm Bureau Federation is primarily
engaged, through various divisions and subsidiaries, in the
formulation, analysis, and promotion of programs (at local, state,
national, and international levels) that are designed to foster the
educational, social, and economic advancement of its members. The
principal offices of Iowa Farm Bureau Federation are at 5400 University
Avenue, West Des Moines, Iowa 50266.
CONTROLLING PERSONS
30. Furnish as at latest practicable date the following information with
respect to any person, other than those covered by Items 28, 29, and 42
who directly or indirectly controls the depositor.
None.
COMPENSATION OF OFFICERS AND DIRECTORS OF DEPOSITOR
COMPENSATION OF OFFICERS
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31. Furnish the following information with respect to the remuneration for
services paid by the depositor during the last fiscal year covered by
financial statements filed herewith:
(a) directly to each of the officers or partners of the depositor
directly receiving the three highest amounts of remuneration;
(b) directly to all officers or partners of the depositor as a
group exclusive of persons whose remuneration is included
under Item 31(a), stating separately the aggregate amount paid
by the depositor itself and the aggregate amount paid by all
the subsidiaries;
(c) indirectly or through subsidiaries to each of the officers or
partners of the depositor.
Not applicable. As of this date, meaningful allocations have
not been made.
COMPENSATION OF DIRECTORS
32. Furnish the following information with respect to the remuneration for
services, exclusive of remuneration reported under Item 31, paid by the
depositor during the last fiscal year covered by financial statements
filed herewith:
(a) the aggregate direct remuneration to directors;
(b) indirectly or through subsidiaries to directors.
Not applicable. SEE Item 31.
COMPENSATION TO EMPLOYEES
33. (a) Furnish the following information with respect to the
aggregate amount of remuneration for services of all employees
of the depositor (exclusive of persons whose remuneration is
reported in Items 31 and 32) who received remuneration in
excess of $10,000 during the last fiscal year covered by
financial statements filed herewith from the depositor and any
of its subsidiaries.
Not applicable. SEE Item 31.
(b) Furnish the following information with respect to the
remuneration for services paid directly during the last fiscal
year covered by financial statements filed herewith to the
following classes of persons (exclusive of those persons
covered by Item 33(a)): (1) Sales managers, branch managers,
district managers and other persons supervising the sale of
registrant's securities; (2) Salesmen, sales agents,
canvassers and other persons making solicitations but not in
supervisory capacity;
41
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(3) Administrative and clerical employees; and (4) Others
(specify). If a person is employed in more than one capacity,
classify according to predominant type of work.
Not applicable. SEE Item 31.
COMPENSATION TO OTHER PERSONS
34. Furnish the following information with respect to the aggregate amount
of compensation for services paid any person (exclusive of persons
whose remuneration is reported in Items 31, 32 and 33), whose aggregate
compensation in connection with services rendered with respect to the
trust in all capacities exceeded $10,000 during the last fiscal year
covered by financial statements filed herewith from the depositor and
any of its subsidiaries.
Not applicable. SEE Item 31.
IV.
DISTRIBUTION AND REDEMPTION OF SECURITIES
DISTRIBUTION OF SECURITIES
35. Furnish the names of the states in which sales of the trust's
securities (A) are currently being made, (B) are presently proposed to
be made, and (C) have been discontinued, indicating by appropriate
letter the status with respect to each state.
VUL sales are currently being made in the states of Arizona, Colorado,
Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota,
Oklahoma, South Dakota, Utah, Wisconsin and Wyoming. No LSVUL sales are
currently being made, but it is proposed that this policy be made
available for sale in the same states.
36. If sales of the trust's securities have at any time since January 1,
1936 been suspended for more than a month, describe briefly the reasons
for such suspension.
Not applicable.
37. (a) Furnish the following information with respect to each
instance where subsequent to January 1, 1937, any federal or
state governmental officer, agency, or regulatory body denied
authority to distribute securities of the trust, excluding a
denial which was merely a procedural step prior to any
determination by such officer, etc. and which denial was
subsequently rescinded.
(1) Name of officer, agency or body.
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(2) Date of denial.
(3) Brief statement of reason given for revocation.
Not applicable.
(b) Furnish the following information with regard to each instance
where, subsequent to January 1, 1937, the authority to
distribute securities of the trust has been revoked by any
federal or state governmental officer, agency or regulatory
body.
Not applicable.
38. (a) Furnish a general description of the method of distribution of
securities of the trust.
The Policy will be sold by individuals who, in addition to
being licensed as life insurance agents for the Company, are
also registered representatives of ET Marketing, the principal
underwriter of the Policies. ET Marketing is registered with
the Securities and Exchange Commission under the Securities
Exchange Act of 1934 and is a member of the National
Association of Securities Dealers, Inc.
(b) State the substance of any current selling agreement between
each principal underwriter and the trust or the depositor,
including a statement as to the inception and termination
dates of the agreement, any renewal and termination
provisions, and any assignment provisions.
The Company has entered into an agreement with ET Marketing,
the principal underwriter, pursuant to which the Company will
pay commissions for services in distributing the Policy.
(c) State the substance of any current agreements or arrangements
of each principal underwriter with dealers, agents, salesmen,
etc. with respect to commissions and overriding commissions,
territories, franchises, qualifications and revocations. If
the trust is the issuer of periodic payment plan certificates,
furnish schedules of commissions and the bases thereof. In
lieu of a statement concerning schedules of commissions, such
schedules of commissions may be filed as Exhibit A(3)(c).
SEE Exhibit A (3) (c).
INFORMATION CONCERNING PRINCIPAL UNDERWRITER
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39. (a) State the form of organization of each principal
underwriter of securities of the trust, the name of the
state or other sovereign power under the laws of which each
underwriter was organized and the date of organization.
ET Marketing, the principal underwriter of the Policy, is a
corporation incorporated on May 7, 1970 under the laws of
Delaware.
(b) State whether any principal underwriter currently distributing
securities of the trust is a member of the National
Association of Securities Dealers, Inc.
ET Marketing is a member of the National Association of
Securities Dealers, Inc.
40. (a) Furnish the following information with respect to all fees
received by each principal underwriter of the trust from the
sale of securities of the trust and any other functions in
connection therewith exercised by such underwriter in such
capacity or otherwise during the period covered by the
financial statements filed herewith.
Not applicable.
(b) Furnish the following information with respect to any fee or
any participation in fees received by each principal
underwriter from any underlying investment company or any
affiliated person or investment adviser of such company:
(1) The nature of such fee or participation.
(2) The name of the person making payment.
(3) The nature of the services rendered in consideration
for such fee or participation.
(4) The aggregate amount received during the last fiscal
year covered by the financial statements filed
herewith.
No fees have yet been paid.
41. (a) Describe the general character of the business engaged in by
each principal underwriter, including a statement as to any
business other than the distribution of securities of the
trust. If a principal underwriter acts or has acted in any
capacity with respect to any investment company or companies
other than the trust, state the name or names of such company
or companies, their relationship, if any, to the trust and the
nature of such activities. If a principal underwriter has
ceased to act in such named capacity, state the date of and
the circumstances surrounding such cessation.
44
<PAGE>
ET Marketing acts as principal underwriter of the Policies. ET
Marketing also underwrites or distributes other variable
insurance policies or other securities.
(b) Furnish as at latest practicable date the address of each
branch office of each principal underwriter currently selling
securities of the trust and furnish the name and residence
address of the person in charge of office.
Not applicable.
(c) Furnish the number of individual salesmen of each principal
underwriter through whom any of the securities of the trust
were distributed for the last fiscal year of the trust covered
by the financial statements filed herewith and furnish the
aggregate amount of compensation received by such salesmen in
such year.
salesmen for VUL, $ compensation
------------ ---------------
received for VUL.
Not applicable for LSVUL.
42. Furnish as at latest practicable date the following information with
respect to each principal underwriter currently distributing securities
of the trust and with respect to each of the officers, directors or
partners of such underwriter: (a) name and principal business address;
(b) position with principal underwriter; (c) ownership of securities of
the trust.
Stephen M. Morain, Senior Vice President, General Counsel & Manager
William J. Oddy, Chief Operating Officer & Manager
Thomas R. Gibson, Chief Executive Office & Manager
James W. Noyce, Chief Financial Officer & Manager
Timothy J. Hoffman, Vice President
Dennis M. Marker, Investment Vice President, Administration, Secretary
& Manager
Thomas E. Burlingame, Manager
F. Walter Tomenga, Manager
Lynn E. Wilson, Manager
Lou Ann Sandburg, Vice President, Investments, Assistant Treasurer &
Manager
Robert A. Simons, Senior Counsel - Investments
James P. Brannen, Controller & Vice President
Sue A. Cornick, Sr. Market Conduct & Mutual Funds Vice President &
Ass't Secretary
Kristi Rojohn, Director, Investment Compliance & Assistant Secretary
Elaine A. Followwill, Compliance Assistant & Assistant Secretary
Roger F. Grefe, Investment Management Vice President
Robert Rummelhart, Fixed Income Vice President
Charles T. Happel, Portfolio Manager
Laura Kellen Beebe, Portfolio Manager
Larry J. Patterson, Vice President
45
<PAGE>
The sale of the LSVUL Policy has not yet commenced.
43. Furnish, for the last fiscal year covered by the financial statements
filed herewith, the amount of brokerage commissions received by any
principal underwriter who is a member of a national securities exchange
and who is currently distributing the securities of the trust or
effecting transactions for the trust in the portfolio securities of the
trust.
$ commissions received for VUL.
-------------------
Not applicable for LSVUL.
OFFERING PRICE OR ACQUISITION VALUATION OF SECURITIES OF THE TRUST
44. (a) Furnish the following information with respect to the
method of valuation used by the trust for purposes of
determining the offering price to the public of securities
issued by the trust or the valuation of shares or interests in
the underlying securities acquired by the holder of a periodic
payment plan certificate:
(1) The source of quotations used to determine the value
of portfolio securities.
Fund shares are valued at the net asset value per
share as supplied to the Company by the Fund or its
agent.
(2) Whether opening, closing, bid, asked or any other
price is used.
SEE Items 44(a)(1) and 16.
(3) Whether price is as of the day of sale or as of any
other time.
SEE Item 16.
(4) A brief description of the methods used by registrant
for determining other assets and liabilities
including accrual for expenses and taxes (including
taxes on unrealized appreciation).
The assets of the Variable Account and liabilities
(such as charges against the Variable Account) are
valued in accordance with generally accepted
accounting principles on an accrual basis. Because of
its current tax status, the Company does not expect
to incur any federal income tax liabilities that
would be chargeable to the Variable Account, and the
Company does not intend to make a charge for federal
income taxes. The Company may, however, incur state
and local taxes (in addition to premium taxes) in
several states. At present, these taxes are not
significant. If there is a
46
<PAGE>
material change in state or local tax laws, charges
for such taxes, if any, attributable to the Variable
Account may be made.
(5) Other items which registrant adds to the net asset
value in computing offering price of its securities.
Not applicable.
(6) Whether adjustments are made for fractions:
(i) before adding distributor's compensation
(load); and
(ii) after adding distributor's compensation
(load).
Not applicable because the Variable Account does not
compute per-unit values and sales loads in the manner
presupposed by this Item and Item 44(b).
Appropriate adjustments will be made for fractions in
all computations.
(b) Furnish a specimen schedule showing the components of the
offering price of the trust's securities as at the latest
practicable date.
The Company may require the Policyowner to pay an initial
premium that, when reduced by the premium expense charge, will
be sufficient to pay the monthly deduction for the first
policy month.
(c) If there is any variation in the offering price of the trust's
securities to any person or classes of persons other than
underwriters, state the nature and amount of such variation
and indicate the person or classes of persons to whom such
offering is made.
The Company does not require premium payments of a fixed
amount at designated intervals for a specified time period.
The Policyowner may, subject to the limitations set forth in
Item 10(i), pay premiums at any frequency and in any amount.
Nonetheless, Policyowners will need to pay sufficient premiums
to maintain adequate Cash Value to pay monthly charges,
including the cost of insurance. The cost of insurance will
vary, depending upon the Insured's age, sex and premium class.
In addition, there will be additional charges if additional
insurance benefits are elected. Thus, for the Policy to remain
in force, a Policyowner will need to take the cost of
insurance, as well as other factors such as investment
performance, into consideration in determining the amount and
frequency of premium payments.
47
<PAGE>
45. Furnish the following information with respect to any suspension of the
redemption rights of the securities issued by the trust during the
three fiscal years covered by the financial statements filed herewith.
Not applicable.
REDEMPTION VALUATION OF SECURITIES OF THE TRUST
46. (a) Furnish the following information with respect to the
method of determining the redemption or withdrawal valuation
of securities issued by the trust:
(1) The source of quotations used to determine the value
of portfolio securities.
SEE Item 44(a)(1).
(2) Whether opening, closing, bid, asked or any other
price is used.
SEE Item 44(a)(2).
(3) Whether price is as of the day of sale or as of any
other time.
The price is as of the end of the Valuation Period
during which the surrender request is received at the
Company's Home Office.
(4) A brief description of the methods used by registrant
for determining other assets and liabilities
including accrual for expenses and taxes (including
taxes on unrealized appreciation).
SEE Items 44(a)(4) and 18(c).
(5) Other items which registrant deducts from the net
asset value in computing redemption value of its
securities:
SEE Answer to Item 10(c).
(6) Whether adjustments are made for fractions.
Not applicable.
(b) Furnish a specimen schedule showing the components of the
redemption price to the holders of the trust's securities as
at latest practicable date.
48
<PAGE>
A surrender charge equal to the lesser of $25 or 2% of the
amount partially or fully surrendered will apply under a VUL.
(This same calculation will be considered for the partial
withdrawal fee in and LSVUL). In an LSVUL, a surrender charge
will apply to any surrender during the first ten Policy Years,
as well as during the first ten years following an increase in
Specified Amount.
PURCHASE AND SALE OF INTERESTS IN UNDERLYING SECURITIES FROM AND TO SECURITY
HOLDERS
47. Furnish a statement as to the procedure with respect to the maintenance
of a position in the underlying securities or interests in the
underlying securities, the extent and nature thereof and the person who
maintains such a position. Include a description of the procedure with
respect to the purchase of underlying securities or interests in
underlying securities from security holders who exercise redemption or
withdrawal rights and the sale of such underlying securities and
interests in the underlying securities to other security holders. State
whether the method of valuation of such underlying securities or
interests in underlying securities differs from that set forth in Items
44 and 46. If any item of expenditure included in the determination of
the valuation is not or may not actually be incurred or expended,
explain the nature of such item and who may benefit from the
transaction.
Shares of the Fund are purchased at net asset value. Shares of the Fund
will be issued only to the Company, its affiliates and non-affiliated
life insurance companies for investment of the assets of separate
accounts that hold assets from the sale of variable insurance products,
and will not be sold directly to the general public. The Company will
redeem sufficient shares of the Fund to pay certain life insurance
proceeds, benefits at maturity, or surrender proceeds, or for other
purposes contemplated by the Policy.
V.
INFORMATION CONCERNING THE TRUSTEE
OR CUSTODIAN
48. Furnish the following information as to each trustee or custodian of
the trust:
(a) Name and principal business address.
(b) Form of organization.
(c) State or other sovereign power under the laws of which the
trustee or custodian was organized.
(d) Name of governmental supervising or examining authority.
49
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The Company acts as custodian and holds the assets of the
Variable Account and maintains records of all purchases and
redemptions of shares of the Investment Options held by the
Variable Account. The assets are kept physically segregated
and held separate and apart from the Company's General
Account. SEE ALSO Item 2.
49. State the basis for payment of fees or expenses of the trustee or
custodian for services rendered with respect to the trust and its
securities, and the aggregate amount thereof for the last fiscal year.
Indicate the person paying such fees or expenses. If any fees or
expenses are prepaid, state the unearned amount.
Not applicable.
50. State whether the trustee or custodian or any other person has or may
create a lien on the assets of the trust, and if so, give full
particulars, outlining the substance of the provisions of any indenture
or agreement with respect thereto.
The assets of the Variable Account are not chargeable with liabilities
arising out of any other business that the Company may conduct. The
assets of the Variable Account are available to cover the general
liabilities of the Company only to the extent that assets in the
Variable Account exceed liabilities arising under the Policy. The
income, capital gains, and capital losses of each Subaccount are
credited to or charged against the assets held in that Subaccount in
accordance with the terms of the Policy.
VI.
INFORMATION CONCERNING INSURANCE OF
HOLDERS OF SECURITIES
51. Furnish the following information with respect to insurance of holders
of securities:
(a) The name and address of the insurance company.
The name and address of the Company are set forth in the
Answer to Item 2.
(b) The types of Policies and whether individual or group
Policies.
The VUL is a flexible premium variable life insurance policy
issued on an individual basis. The LSVUL is a flexible premium
last survivor variable life insurance policy issued on an
individual basis.
(c) The types of risks insured and excluded.
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The Company assumes the risk that the deductions made for
mortality risks will prove inadequate to cover actual
insurance costs. The Company also assumes the risk that
deductions for expenses may be inadequate. See Item 10(i).
(d) The coverage of the Policies.
The minimum Specified Amount is stated in each Policy. Death
proceeds will be reduced by any outstanding Policy Debt and
any due and unpaid monthly deductions, and increased by any
unearned loan interest and any premiums paid after the date of
death. See Paragraph (c) of this Item.
(e) The Beneficiaries of such Policies and the uses to which the
proceeds of Policies must be put.
The recipient of the benefits of the insurance undertakings
described in the Answer to Items 10(i) and 51(c) is either the
Policyowner or the primary Beneficiary or contingent
Beneficiary specified in the Policy. There are no restrictions
on the use of the proceeds other than those established by the
Policyowner.
(f) The terms and manners of cancellation and of reinstatement.
The insurance undertakings described in the Answer to Item
51(c) are an integral part of the Policy and may not be
terminated while the Policy remains in force.
(g) The method of determining the amount of premiums to be paid by
holders of securities.
SEE Answers to Items 13(a) and 13(e) for the amount of charges
imposed. See Items 10(i) and 44(c) for the manner in which the
premium is determined.
(h) The amount of aggregate premiums paid to the insurance company
during the last fiscal year.
Not applicable.
(i) Whether any person other than the insurance company receives
any part of such premiums, the name of each such person and
the amounts involved, and the nature of the services rendered
therefor.
No person other than the Company receives any part of the
amounts deducted for assumption of mortality and expense
risks.
51
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(j) The substance of any other material provisions of any
indenture or agreement of the trust relating to insurance.
None.
VII .
POLICY OF REGISTRANT
52. (a) Furnish the substance of the provisions of any indenture or
agreement with respect to the conditions upon which and the
method of selection by which particular portfolio securities
must or may be eliminated from assets of the trust or must or
may be replaced by other portfolio securities. If an
investment adviser or other person is to be employed in
connection with such selection, elimination or substitution,
state the name of such person, the nature of any affiliation
to the depositor, trustee or custodian, and any principal
underwriter, and the amount of remuneration to be received for
such services. If any particular person is not designated in
the indenture or agreement, describe briefly the method of
selection of such person.
SEE Answers to Items 10(g) and 10(h) as regards the Company's
right to substitute any other investment for shares of any
Portfolio of the Fund.
(b) Furnish the following information with respect to each
transaction involving the elimination of any underlying
security during the period covered by the financial statements
filed herewith.
Not applicable.
(c) Describe the Policy of the trust with respect to the
substitution and elimination of the underlying securities of
the trust with respect to:
(1) the grounds for elimination and substitution;
(2) the type of securities which may be substituted;
(3) whether the acquisition of such substituted security
or securities would constitute the concentration of
investment in a particular industry or group of
industries or would conform to a Policy of
concentration of investment in a particular industry
or group of industries;
(4) whether such substituted securities may be the
securities of another investment company; and
52
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(5) the substance of the provisions of any indenture or
agreement which authorize or restrict the Policy of
the registrant in this regard.
SEE Answer to Items 10(g) and 10(h).
(d) Furnish a description of any policy (exclusive of policies
covered by paragraphs (a) and (b) herein) of the trust which
is deemed a matter of fundamental policy and which is elected
to be treated as such.
None.
53. (a) State the taxable status of the trust.
The Company does not expect to incur any income tax upon the
earnings or the realized capital gains attributable to the
Variable Account. Based upon these expectations, no charge is
being made currently to the Variable Account for federal
income taxes which may be attributable to the Variable
Account. If, however, the Company determines that it may incur
such taxes, it may assess a charge for those taxes from the
Variable Account.
The Company may also incur state and local taxes (in addition
to premium taxes) in several states. At present, these taxes
are not significant. If there is a material change in state or
local tax laws, charges for such taxes, if any, attributable
to the Variable Account may be made.
(b) State whether the trust qualified for the last taxable year as
a regulated investment company as defined in Section 851 of
the Internal Revenue Code of 1954, and state its present
intention with respect to such qualifications during the
current taxable year.
Not applicable. SEE Answer to Item 53(a).
VIII.
FINANCIAL AND STATISTICAL INFORMATION
54. If the trust is not the issuer of periodic payment plan certificates,
furnish the following information with respect to each class or series
of its securities.
Not applicable.
55. If the trust is the issuer of periodic payment plan certificates, a
transcript of a hypothetical account shall be filed in approximately
the following form on the basis of the certificate calling for the
smallest amount of payments. The schedule shall cover a certificate of
the
53
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type currently being sold assuming that such certificate had been sold
at a date approximately ten years prior to the date of registration or
at the approximate date of organization of the trust.
Not applicable.
56. If the trust is the issuer of periodic payment plan certificates,
furnish by years for the period covered by the financial statements
filed herewith in respect of certificates sold during each period, the
following information for each fully paid type and each installment
payment type of periodic payment plan certificate currently being
issued by the trust.
Not applicable.
57. If the trust is the issuer of periodic payment plan certificates,
furnish by years for the period covered by the financial statements
filed herewith the following information for each installment payment
type of periodic payment plan certificate currently being issued by the
trust.
Not applicable.
58. If the trust is the issuer of periodic payment plan certificates,
furnish the following information for each installment payment type of
periodic payment plan certificate outstanding as at the latest
practicable date.
Not applicable.
59. Financial statements:
FINANCIAL STATEMENTS OF THE TRUST
Financial statements will be contained in a post-effective amendment to
the registration statement for the Policy on Form S-6 filed under the
Securities Act of 1933. They are incorporated herein by reference.
FINANCIAL STATEMENTS OF THE DEPOSITOR
The financial statements of the Company will be contained in a
post-effective amendment to the registration statement on Form S-6
filed by the Registrant pursuant to the Securities Act of 1933. They
are incorporated herein by reference.
IX.
EXHIBITS
54
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The required exhibits to the Farm Bureau Life Variable Account
registration statement on Form S-6 are incorporated by reference.
SIGNATURE
Pursuant to the requirements of the Investment Company Act of 1940 the
depositor of the registrant has caused this registration statement to be duly
signed on behalf of the registrant in the City of West Des Moines, State of Iowa
on February 28, 2000.
FARM BUREAU LIFE VARIABLE ACCOUNT
(Name of registrant)
BY: FARM BUREAU LIFE INSURANCE COMPANY
(Name of depositor)
By: _/s/ Edward M. Wiederstein__
(Print name) _Edward M. Wiederstein_
(Title) _President & Director___
Farm Bureau Life Insurance Company
55
